As most of us already know or rather have heard, money is no longer a fixed amount of liquidity based on personal bank deposits. The digital age in which we live has allowed us to spend more than the money we have in our account. At first glance this practice may seem largely interesting. But do not be fooled several costs are hidden there.
FEES WITHOUT PROVISIONS
Many financial institutions allow their clients to withdraw more money than the amount available in their accounts, this is called a short transaction. Indeed, this transaction will open your account (negative) but this is not free.
In fact, most banks charge up to $ 45 for this type of transaction, others will charge a daily fee until your account is back to positive. In addition, insufficient funds can also result in fees due to bad checks.
TIPS TO AVOID FUND INSUFFICIENCY OR TRANSACTION COSTS IN DISCOVERY
Anticipating your next payment is essential to avoid overdraft fees. Knowing the amount and exact date of the next payment will allow you to be the most prepared possible by having the necessary amount in your account at the appropriate time. Do not overlook the various costs associated with your accounts as you prepare to make your next payment. In short, keep up to date with the balance of your accounts as well as the related costs.
Set up automatic payments with your financial institution to stay organized. Used checks to pay all your bills can sometimes be confusing and can even lead to funds shortfall errors. Automatic payments can better anticipate the amount that will be withdrawn from your account at the exact time. The configuration is simple and is typically done through the online portals of financial institutions.
Stay up to date
It is very important to check and pass through your statement of account, this will allow you to better understand your expenses. All the more, check that there are no hidden fees that are charged to you monthly. We recommend checking your account once a month; a daily check is also a very good idea to maintain a realistic perspective of your consumption capacity.
KEEP A CUSHION (OR EMERGENCY BACKGROUND)
Anticipating the unexpected can be an ideal solution to avoid ridiculous expenses. Keeping a certain amount in your account, on a monthly basis, will help you avoid underpayment costs, in addition to helping you manage your personal finances.
Joining the online alerts services of your financial institution will help you keep an eye on the amount you have in your account. Again, the organization is the key to avoiding unwanted fees.
PROTECTION AGAINST TRANSACTIONS WITHOUT FUNDS
Depending on your bank and how you manage your accounts, protection against insufficient funds can be a good or bad option. Some banks offer this service with short transaction fees at a lower cost. If your financial institution has such a promotion, it may be an option to consider. In addition, this option may already be in place at a lower cost.
USE YOUR ACCOUNTS
Some purchases may lead to a freeze on an amount of funds in your account. Typically this is the case when you rent a vehicle, a hotel or you use your debit card to pay for your gas. This type of freeze affects the amount available for your other transactions. For example, if you have $ 300 in your checking account and you rent a car. The rental company will place a $ 200 freeze to pay for the rental. In fact, the money is still in your account and you buy another product for $ 150, you may have to pay a transaction fee short. Specifically only $ 100 was available for other purchases.
These tips can help you better understand your expenses, cash flow, and spending habits. Also preparing a budget can also help you avoid the costs of insufficient funds or overdraft. Always try to anticipate the unexpected and be as prepared as possible. You can also apply for a personal loan to ensure that your balance remains sufficient for your payment to pass and that you do not go for any fees without provisions.